Ride-hailing firm Grab Vietnam has filed an appeal against the ruling of the HCMC People’s Court ordering it to pay VND4.8 billion (US$207,100) in compensation to Vinasun, an HCMC-based taxi operator, the local media reported.

Grab cars are seen in this file photo. Grab has appealed against the ruling of the HCMC People’s Court over the compensation to Vinasun

According to Grab, the HCMC People’s Court has no jurisdiction over the case, so it requested the court to reverse the first-instance judgment and dismiss the case.

If the appellate court does not dismiss the case, it has been requested to amend the first-instance judgment to determine that Grab does not conduct transport business activities and does not violate Decision 24 on the pilot scheme for ride-hailing services and Decree 86 on the auto transport business and its conditions.

The ride-hailing firm also proposed the court should reject Vinasun’s lawsuit against Grab as Vinasun was unable to prove the causal relationship between its damages and the alleged violations that it has accused Grab of committing.

Vinasun filed a lawsuit against Grab in 2017, accusing it of violating the Laws on Commerce and E-transactions and adopting unfair business practices, causing losses for traditional taxi operators, including Vinasun.

As a result, Vinasun demanded that Grab make a lump-sum payment in compensation for its combined business losses of roughly VND41.2 billion in 2016 and the first half of 2017.

On December 28 last year, the HCMC People’s Court ordered Grab Vietnam to pay VND4.8 billion in compensation to Vinasun, as the court found that Grab had run afoul of Vietnam’s transport business regulations because it operates as a taxi business and is not just a tech software provider.

The court found a link between the operations of Grab and Vinasun’s losses in revenue but said Grab alone was not to blame for the Vinasun’s decline in sales.

Therefore, the court only partially accepted Vinasun’s request.

SGT